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Strengthen Regional Ties, Boost Investment To Counter US Tariff Impact, ESCAP Chief Tells ASEAN

23/02/2025 10:29 AM

By Nur Athirah Mohd Shaharuddin & Nabilah Saleh

KUALA LUMPUR, Feb 23 (Bernama) -- The head of a key intergovernmental platform in the Asia-Pacific has urged Southeast Asian economies to strengthen regional cooperation and boost investment to cushion against the fallout from US President Donald Trump’s move to impose steep tariffs on imports from China, Canada and Mexico.  

“With economic uncertainty from US tariffs, ASEAN has an opportunity to build a stronger, more resilient trade network by deepening regional integration,” Under-Secretary-General of the United Nations Armida Salsiah Alisjahbana told Bernama in an interview.  

Alisjahbana, who is also Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), said UN bodies were monitoring the impact of the tariffs, which were imposed only weeks ago, on regional economies, including ASEAN.  

ESCAP, the largest UN body promoting regional development in the Asia-Pacific, includes ASEAN and Malaysia among its members.  

She did not rule out the possibility that US tariffs, along with Washington’s broader trade policies—including levies on steel and aluminium imports—could weigh on the economies of America’s trading partners.  

After Trump signed executive orders imposing tariffs of up to 25 per cent on imports, economists raised concerns that any hit to China could reverberate across ASEAN, whose economies are closely tied to the Asian superpower.  

“Instead of relying solely on external markets, ASEAN should continue enhancing intra-regional trade, sustainable investment and digital connectivity,” she said.  

With global economic uncertainty persisting, Alisjahbana urged ASEAN nations to be proactive in diversifying trade partnerships and advancing open, fair and rules-based economic policies.  

“We are closely monitoring the evolving US trade policy, particularly its increasing reliance on tariffs and bilateral agreements, which could have significant implications for global trade and investment,” she said.  

“I am not in a position to comment on the policies of a specific country, but we do see that many are watching closely as the US shifts its trade and investment stance.  

“Their (America’s) approach appears to be moving towards more bilateral engagements, with tariffs and non-tariff measures as key instruments,” she said.  

Alisjahbana was on a two-day visit to Malaysia from Feb 17-18, 2025.  

She met Prime Minister Datuk Seri Anwar Ibrahim, Foreign Minister Datuk Seri Mohamad Hasan, Housing and Local Government Minister Nga Kor Ming and the Economy Ministry’s Deputy Secretary-General (Macro) Datuk V Valluvan to discuss regional issues.  

She acknowledged concerns about the increasing use of trade barriers and their potential to disrupt global supply chains.

 -- BERNAMA


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